The government has decided to discontinue the interest-free loan facility previously provided to public officials for purchasing vehicles. The decision was taken at the fourth Cabinet meeting held on Thursday (April 2), chaired by Prime Minister Tarique Rahman at the Cabinet Division conference room in the National Parliament Secretariat.
The information was disclosed during a press briefing organised by the Cabinet Division on Friday (April 3).
Under the “Interest-Free Loan and Vehicle Monetisation Policy for Entitled Government Officials, 2020,” officials holding the rank of Deputy Secretary and above were eligible to receive interest-free loans of up to Tk 3 million to purchase vehicles. Following the new decision, this benefit will no longer be available.
According to the policy, eligible officials were not only entitled to the loan facility but also received a monthly allowance of Tk 50,000 for vehicle maintenance and driver salaries. In addition, a 10 per cent annual depreciation benefit for the vehicle was applicable.
Presenting the Cabinet’s decisions, the press briefing stated that, in an effort to reduce government operational expenditures, interest-free loans for vehicle purchases by public officials and all government-funded foreign training will remain suspended until further notice.
Expenditures on domestic training (excluding essential training costs) must be reduced by 50 per cent. Spending on meeting and seminar hospitality will be cut by 50 per cent, seminar and conference expenses by 20 per cent, and travel expenses by 30 per cent.